![](http://investorshub.advfn.com/images/default_ih_profile2_4848.jpg?cb=0)
Sunday, April 08, 2007 10:53:53 PM
Will Exxon Go For Devon?
APRIL 16, 2007
Gene Marcial
INSIDE WALL STREET
Expect more mergers and acquisitions in the oil patch. As oil companies pump up their cash hoards at a dizzying pace, they are looking for growth in the U.S. rather than overseas, says Michael Metz, chief investment strategist at Oppenheimer. Russia, Venezuela, and other Latin American countries are now less welcoming to U.S. oil interests, notes Metz, so Big Oil is looking for American outfits with outsize reserves. Oppenheimer oil guru Fadel Gheit says rumors have resurfaced that Exxon Mobil (XOM ) may go after Devon Energy (DVN ), a major oil-and-gas company and the largest U.S.-based independent natural gas producer, with an estimated proved reserves of 2.4 billion barrels of oil equivalents. "An Exxon-Devon deal makes sense," says Gheit, because of Devon's large properties. He notes that Devon leads in deepwater production in the Gulf of Mexico "where Exxon has little foothold." With oil at $62 to $65 a barrel, Gheit estimates Exxon's cash flow at $52 billion and says its free cash flow could be $22 billion. Even without a takeover, Devon shares, now at 71.45, will hit 90 to 100 by yearend 2008, he figures. When last featured in this column, on July 10, 2006, the stock was at 56. Tina Vital of Standard & Poor's (MHP ) says Devon has turned itself, through discoveries and acquisitions, "into a production-growth stock from a value-enhancing restructuring story." She rates it a buy. Both ExxonMobil and Devon said they don't comment on rumors.
Add person mark to follow my picks:
http://investorshub.advfn.com/boards/addPersonMrk.asp?user=70041
Recent KLNG News
- Form 10-Q - Quarterly report [Sections 13 or 15(d)] • Edgar (US Regulatory) • 05/06/2024 08:05:33 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 05/06/2024 08:05:14 PM
VAYK Exited Caribbean Investments for $320,000 Profit • VAYK • Jun 27, 2024 9:00 AM
North Bay Resources Announces Successful Flotation Cell Test at Bishop Gold Mill, Inyo County, California • NBRI • Jun 27, 2024 9:00 AM
Branded Legacy, Inc. and Hemp Emu Announce Strategic Partnership to Enhance CBD Product Manufacturing • BLEG • Jun 27, 2024 8:30 AM
POET Wins "Best Optical AI Solution" in 2024 AI Breakthrough Awards Program • POET • Jun 26, 2024 10:09 AM
HealthLynked Promotes Bill Crupi to Chief Operating Officer • HLYK • Jun 26, 2024 8:00 AM
Bantec's Howco Short Term Department of Defense Contract Wins Will Exceed $1,100,000 for the current Quarter • BANT • Jun 25, 2024 10:00 AM